Retirement fund body EPFO on Thursday started crediting 8.5% rate of interest on employees' provident fund (EPF) for 2019-20 for its over six crore members, a senior official said.
A large number of members of the Employees Provident Fund Organisation (EPFO) would be able to see their updated EPF accounts with credit of 8.5% rate of interest for 2019-20, a senior official told PTI.
The official further informed that the labour ministry has already sent the direction to credit the 8.5% interest on EPF for 2019-20 to the EPFO and the body has already started crediting interest into members account for the last fiscal.
Labour Minster Santosh Gangwar said, "We had said that it would be our endeavour to provide 8.5% rate of interest on EPF for 2019-20. We have issued a notification to provide 8.5% rate of interest on EPF for 2019-20. We have also began the process to credit the said rate of interest into subscribers account."
The minister also said that he has asked to ensure that all those members who are retiring on December 31, must get 8.5% rate of interest (for 2019-20).
The process for capital gains for payment of 0.35% interest for 2019-20 has also been completed, he added.
"It (8.5% interest) would comprise 8.15% from debt income and balance 0.35% (capital gain) from the sale of ETFs (exchange traded funds) subject to their redemption by 31st December, 2020," he said.
Earlier in the day, Gangwar had approved the 8.5% rate for last fiscal after receiving the finance ministry's concurrence. Thereafter the direction was sent to the EPFO for crediting the interest on EPF into the subscribers' accounts.
In March this year, the EPFO's apex decision making body Central Board of Trustees headed by Gangwar had approved 8.5% interest rate on EPF for 2019-20.
Earlier in September this year, the EPFO had decided to split 8.5% interest into two installments of 8.15% and 0.35% in its trustees meet headed by Gangwar.
But later, the ministry decided to credit the entire 8.5% into subscribers' accounts in one go.